SJO Daily https://sjodaily.com Tue, 25 Mar 2025 01:04:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://sjodaily.com/wp-content/uploads/2023/01/cropped-sjo-daily-logo-32x32.png SJO Daily https://sjodaily.com 32 32 23andMe Bankruptcy Raises Concerns Over Genetic Data Privacy https://sjodaily.com/2025/03/25/23andme-bankruptcy-raises-concerns-over-genetic-data-privacy/ https://sjodaily.com/2025/03/25/23andme-bankruptcy-raises-concerns-over-genetic-data-privacy/#respond Tue, 25 Mar 2025 01:03:56 +0000 https://sjodaily.com/?p=24912 23andMe, the prominent direct-to-consumer genetic testing company, has filed for Chapter 11 bankruptcy, sparking significant concerns about the future of its customers’ sensitive genetic data. The filing aims to facilitate a court-supervised sale of the company’s assets while addressing mounting financial and legal challenges, including liabilities from a major data […]

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23andMe, the prominent direct-to-consumer genetic testing company, has filed for Chapter 11 bankruptcy, sparking significant concerns about the future of its customers’ sensitive genetic data. The filing aims to facilitate a court-supervised sale of the company’s assets while addressing mounting financial and legal challenges, including liabilities from a major data breach in 2023. As the company seeks a buyer, questions loom over how its vast repository of genetic information will be handled.

The bankruptcy filing, announced on March 23, 2025, follows years of financial instability for 23andMe. Once valued at $6 billion after going public in 2021, the company’s valuation has plummeted to under $50 million. 

Despite assurances from 23andMe that customer data will remain protected and that any buyer must comply with applicable privacy laws, experts warn that federal regulations offer limited safeguards for genetic data. This uncertainty is compounded by the company’s history of sharing anonymized data with pharmaceutical companies like GlaxoSmithKline for research purposes.

The bankruptcy filing has heightened concerns about the security and privacy of genetic data belonging to over 15 million customers. The company’s most valuable asset—its genetic database—could be sold to new owners as part of the restructuring process. Critics worry that a change in ownership might lead to altered privacy policies or misuse of sensitive information.

The risks are not hypothetical. In 2023, a cyberattack exposed personal information from nearly seven million accounts, including raw genetic data. Such breaches highlight how vulnerable DNA databases can be to hacking and misuse.

Steps Customers Can Take to Protect Their Data

Experts strongly urge customers to take proactive measures to safeguard their genetic information:

  1. Delete Your Data: Customers can request the deletion of their genetic data through their account settings on 23andMe’s website. California residents, under state privacy laws, can also instruct the company to destroy any stored saliva samples.
  2. Revoke Research Permissions: If you previously consented to your genetic data being used for research purposes, you can withdraw that consent through your account settings.
  3. Monitor Privacy Policy Changes: Stay informed about any updates to 23andMe’s privacy policies, particularly if the company is acquired by a new owner.
  4. Advocate for Stronger Regulations: Experts recommend urging lawmakers to enact robust federal privacy protections for genetic data. Current laws like the Genetic Information Nondiscrimination Act (GINA) do not fully address how private companies can use or sell such information.

There are limited legal protections in place for customers’ genetic data during a bankruptcy sale, leaving much of the responsibility to safeguard such sensitive information to the company and its privacy policies. Here’s an overview of the current legal landscape:

Federal Protections

  • The Genetic Information Nondiscrimination Act (GINA) prohibits employers and health insurers from discriminating based on genetic information but does not prevent companies like 23andMe from selling or transferring genetic data during bankruptcy proceedings.
  • The Health Insurance Portability and Accountability Act (HIPAA) applies only to healthcare providers and insurers, not direct-to-consumer genetic testing companies like 23andMe.

State-Level Protections

  • States such as California have enacted laws like the California Consumer Privacy Act (CCPA) and Genetic Information Privacy Act (GIPA), which allow consumers to request the deletion of their genetic data and destruction of biological samples. However, these laws are limited to specific jurisdictions and do not offer nationwide protection.

Bankruptcy-Specific Safeguards

Bankruptcy law provides some oversight during asset sales:

  • Federal courts oversee bankruptcy processes, and agencies such as the U.S. Trustee Program or regulators like the Federal Trade Commission (FTC) can intervene to ensure compliance with privacy statements.
  • In some cases, a consumer privacy ombudsperson may be appointed to review whether data transfers align with existing privacy policies. However, these measures are not guaranteed and depend on the specifics of the case.

Risks in Bankruptcy Sales

The privacy policy of 23andMe reserves the right to transfer customer data in the event of a sale or bankruptcy. While any new owner must initially adhere to existing privacy policies, these policies can be modified after acquisition, potentially allowing broader use or sharing of genetic data without customer consent.

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Bill to Prevent Mahomet Aquifer from Carbon Sequestration Risks Advances to Illinois House https://sjodaily.com/2025/03/24/bill-to-prevent-mahomet-aquifer-from-carbon-sequestration-risks-advances-to-illinois-house/ https://sjodaily.com/2025/03/24/bill-to-prevent-mahomet-aquifer-from-carbon-sequestration-risks-advances-to-illinois-house/#respond Mon, 24 Mar 2025 09:17:00 +0000 https://sjodaily.com/?p=24891 A bill t0 prevent carbon capture and sequestration projects over the Mahomet Aquifer is headed to the House Floor after it passed the House Energy and Environmental Committee with a bipartisan 23-3 vote.  The bill specifically targets areas such as the Mahomet Sole Source Aquifer, a critical water source for […]

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A bill t0 prevent carbon capture and sequestration projects over the Mahomet Aquifer is headed to the House Floor after it passed the House Energy and Environmental Committee with a bipartisan 23-3 vote. 

The bill specifically targets areas such as the Mahomet Sole Source Aquifer, a critical water source for central Illinois residents.

Amending the Carbon Capture and Sequestration Title of the Environmental Protection Act, this move would prohibit any person from conducting carbon sequestration activities over sole source aquifers and bars the Illinois Environmental Protection Agency (EPA) from issuing permits for such operations. This measure is designed to protect vital water resources from potential contamination risks associated with carbon storage technologies. The legislation reflects growing concerns about environmental safety and water resource protection amid advancements in carbon capture technologies.

“Protecting the Mahomet Aquifer is not just about preserving water; it’s about safeguarding the future of our community,” said Senator Paul Faraci (D-Champaign). “While innovation in carbon sequestration holds promise, we must prioritize the health and safety of our residents, ensuring progress never comes at the expense of our most vital resource.” 

The Mahomet Aquifer, a primary source of drinking water in Central Illinois, provides water for nearly one million people across 14 counties. 

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Pentagon Races to Develop Trump’s “Golden Dome” Missile Defense Shield Amid Technical and Budget Challenges https://sjodaily.com/2025/03/24/pentagon-races-to-develop-trumps-golden-dome-missile-defense-shield-amid-technical-and-budget-challenges/ https://sjodaily.com/2025/03/24/pentagon-races-to-develop-trumps-golden-dome-missile-defense-shield-amid-technical-and-budget-challenges/#respond Mon, 24 Mar 2025 07:27:00 +0000 https://sjodaily.com/?p=24888 President Donald Trump’s ambitious “Golden Dome” missile defense initiative is rapidly gaining momentum within the Pentagon, with military officials scrambling to develop a nationwide shield designed to protect the entire United States from long-range missile attacks. The project, which faces significant technical and financial hurdles, has been designated as a […]

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President Donald Trump’s ambitious “Golden Dome” missile defense initiative is rapidly gaining momentum within the Pentagon, with military officials scrambling to develop a nationwide shield designed to protect the entire United States from long-range missile attacks. The project, which faces significant technical and financial hurdles, has been designated as a top White House priority with instructions that financial resources will not be constrained.

The President signed an executive order in January directing Defense Secretary Pete Hegseth to develop a strategy for a next-generation defense shield. The order tasks the Secretary of Defense with submitting a reference architecture, capabilities-based requirements, and an implementation plan by March 28, 2025.

Trump has asked Congress to fund the “Golden Dome” missile defense shield, indicating that congressional approval will be necessary for allocating resources to the project. GOP lawmakers in both the House and Senate are pushing for at least a $100 billion increase in defense spending over the next decade to support President Trump’s agenda, including the creation of his missile defense system.

Originally called “Iron Dome for America” in reference to Israel’s successful short-range missile defense system, the Pentagon renamed the initiative to “Golden Dome” in February 2025. The name change helps distinguish the U.S. project from Israel’s system while aligning with President Trump’s rhetoric about ushering in a “golden age in America”.

According to  Vice Chief of Space Operations Michael Guetlein, implementing the Golden Dome will require collaboration on a scale comparable to the Manhattan Project that developed the atomic bomb.

The initiative aims to create a comprehensive defense system capable of countering various threats, including ballistic missiles, hypersonic weapons, and advanced cruise missiles. While Israel’s Iron Dome is designed to protect a territory comparable to New Jersey from short-range threats, Trump envisions a space-based missile defense system capable of safeguarding the entire United States from sophisticated ballistic and hypersonic missiles.

While specifics of the system remain largely undefined beyond its name, Pentagon officials have been instructed to incorporate future financial allocations for the Golden Dome into budget forecasts for 2026 to 2030. 

A 2024 study published in Defense and Peace Economics estimates that developing a multi-layered missile defense system with a 50% interception success rate could cost anywhere from $430 billion to $5.3 trillion. The U.S. Department of Defense fiscal year 2025 (FY2025) budget request was $849.8 billion.

According to GovExec Space Project, the missile defence system may include the following components:

  • A defense against ballistic, hypersonic, advanced cruise missiles, and other next-generation aerial attacks from peer, near-peer, and rogue adversaries.
  • Acceleration of the deployment of the Hypersonic and Ballistic Tracking Space Sensor layer.
  • Development and deployment of space-based interceptors capable of boost-phase intercept.
  • Deployment of underlayer and terminal-phase intercept capabilities to defeat a countervalue attack.
  • Development and deployment of capabilities to defeat missile attacks prior to launch and in the boost phase.
  • Development and deployment of non-kinetic capabilities to augment the kinetic defeat of ballistic, hypersonic, advanced cruise missiles, and other next-generation aerial attacks.

Defense contractors are positioning themselves to secure portions of what promises to be a lucrative long-term project. Lockheed Martin has already established a dedicated webpage for the Golden Dome initiative.

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Bill to Regulate Chemicals in Cosmetic Products Introduced in Illinois https://sjodaily.com/2025/03/23/bill-to-regulate-chemicals-in-cosmetic-products-introduced-in-illinois/ https://sjodaily.com/2025/03/23/bill-to-regulate-chemicals-in-cosmetic-products-introduced-in-illinois/#respond Sun, 23 Mar 2025 18:09:39 +0000 https://sjodaily.com/?p=24875 Illinois lawmakers have introduced a new bill aimed at enhancing consumer safety by regulating the use of certain chemicals in cosmetic products. The proposed legislation, known as the Chemicals in Cosmetic Products Act, was introduced by Rep. Sonya M. Harper. This bill seeks to prohibit the manufacture, sale, delivery, holding, […]

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Illinois lawmakers have introduced a new bill aimed at enhancing consumer safety by regulating the use of certain chemicals in cosmetic products. The proposed legislation, known as the Chemicals in Cosmetic Products Act, was introduced by Rep. Sonya M. Harper.

This bill seeks to prohibit the manufacture, sale, delivery, holding, or offering for sale of cosmetic products containing specific intentionally added chemical ingredients.

Key Provisions of the Bill

The bill targets a range of chemicals, including:

  • Phthalates: Dibutyl phthalate and Diethylhexyl phthalate, known for their potential health impacts.
  • Formaldehyde and Derivatives: Formaldehyde, Paraformaldehyde, and Methylene glycol, which are linked to health concerns.
  • Mercury and Parabens: Mercury and certain parabens like Isobutylparaben and Isopropylparaben.
  • Phenylenediamine and Salts: m-Phenylenediamine and O-Phenylenediamine, commonly used in hair dyes.
  • Per- and Polyfluoroalkyl Substances (PFAS): A list of specific PFAS substances, which are often referred to as “forever chemicals” due to their persistence in the environment.

The bill allows for exemptions in cases where a cosmetic product contains a technically unavoidable trace quantity of a prohibited ingredient due to manufacturing processes, storage, or packaging. This provision ensures that manufacturers are not penalized for trace amounts that cannot be avoided.

Illinois is part of a broader movement across the U.S. to regulate PFAS and other harmful chemicals in consumer products. States like California, Maryland, and Washington have already enacted similar bans on PFAS in cosmetics, effective January 1, 2025. Other states, including Minnesota and Oregon, are also implementing or considering similar restrictions.

The bill, if passed, would require manufacturers to reformulate their products to comply with the new standards. This could lead to safer products for consumers but may also increase costs for manufacturers. 

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Social Security Administration Makes Changes to Identification and Direct Deposit Verification https://sjodaily.com/2025/03/23/social-security-administration-makes-changes-to-identification-and-direct-deposit-verification/ https://sjodaily.com/2025/03/23/social-security-administration-makes-changes-to-identification-and-direct-deposit-verification/#respond Sun, 23 Mar 2025 17:38:18 +0000 https://sjodaily.com/?p=24905 The Social Security Administration (SSA) has announced significant updates to its identity proofing and direct deposit processing procedures. Starting March 31, 2025, the SSA will enforce stricter identity proofing protocols for benefit claims and direct deposit changes. Beneficiaries and applicants who cannot verify their identity online through their “My Social […]

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The Social Security Administration (SSA) has announced significant updates to its identity proofing and direct deposit processing procedures.

Starting March 31, 2025, the SSA will enforce stricter identity proofing protocols for benefit claims and direct deposit changes. Beneficiaries and applicants who cannot verify their identity online through their “My Social Security” account must visit a local SSA office in person. This change eliminates the option to verify identity over the phone, which was previously available. Claims initiated by phone will not be processed until in-person identity verification is completed.

The new requirements apply not only to new applicants but also to current beneficiaries who wish to make changes to their direct deposit information. This means that any updates to payment methods or other sensitive account details will require either online or in-person verification.

SSA plans to implement the Department of Treasury’s Account Verification Service (AVS). AVS provides instant bank verification services, helping prevent fraud associated with direct deposit changes. Direct deposit change requests will now be processed within one business day, whether submitted online or in person. Previously, online changes could take up to 30 days.

Advocates have raised concerns about how these changes may disproportionately affect older adults, individuals with disabilities, and those without reliable internet access. The requirement for in-person visits could create barriers for people living far from SSA offices or those with mobility challenges.

Additionally, SSA plans to close 47 field offices nationwide as part of cost-cutting measures introduced by the Department of Government Efficiency (DOGE), led by Elon Musk under the Trump administration. Of these, 26 closures are scheduled for this year alone, with some taking effect as early as next month. These closures are concentrated in Southern and Southeastern states, regions where access to SSA services is already limited.

SSA is also cutting approximately 7,000 employees this year, reducing its workforce to around 50,000. This staffing decrease is expected to exacerbate delays in processing applications and resolving service issues. Reports indicate that wait times for appointments are already averaging over a month in many locations.

Elon Musk and other officials have claimed “massive fraud” in Social Security, citing figures like $70 billion lost to fraud annually. A 2024 report by Inspector General Michelle Anderson found that between fiscal years 2015 and 2022, the Social Security Administration (SSA) made nearly $72 billion in improper payments, primarily overpayments. Improper payments include overpayments due to administrative errors or beneficiaries failing to report changes in their circumstances, and do not necessarily indicate criminal intent These improper payments represent less than 1% of the total benefits disbursed during that period, but $23 billion remains unrecovered.

Allegations that tens of millions of deceased individuals are receiving Social Security benefits are unfounded. SSA audits show that nearly all beneficiaries over age 100 are legitimate recipients, and discrepancies in death records are primarily due to outdated systems rather than widespread fraud.

Fraud involving deceased individuals does occur but is limited. For example, a pilot program recovered $31 million in improperly issued federal payments to deceased individuals, which is a small fraction of the total improper payments identified.

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Durbin, Pritzker put pressure on Republicans to oppose cuts to key programs https://sjodaily.com/2025/03/23/durbin-pritzker-put-pressure-on-republicans-to-oppose-cuts-to-key-programs/ https://sjodaily.com/2025/03/23/durbin-pritzker-put-pressure-on-republicans-to-oppose-cuts-to-key-programs/#respond Sun, 23 Mar 2025 09:19:00 +0000 https://sjodaily.com/?p=24893 by Ben Szalinski, Capitol News Illinois March 21, 2025 TAYLORVILLE — Voters must put pressure on congressional Republicans to oppose any budget bill that makes major cuts to services, according to U.S. Sen. Dick Durbin, D-Ill. Lawmakers are set to return to Washington, D.C., this coming week, where they will […]

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by Ben Szalinski, Capitol News Illinois
March 21, 2025

TAYLORVILLE — Voters must put pressure on congressional Republicans to oppose any budget bill that makes major cuts to services, according to U.S. Sen. Dick Durbin, D-Ill.

Lawmakers are set to return to Washington, D.C., this coming week, where they will begin a reconciliation process on a budget plan that Democrats worry will contain major cuts to Medicaid, Social Security and other federal programs.

But if just a handful of Republicans in either chamber oppose President Donald Trump’s preferred budget plan, Congress can likely block cuts to these programs, Durbin said at a news conference Thursday at a Taylorville hospital southeast of Springfield. He put pressure specifically on Illinois’ three Republican members of the House of Representatives.

“I hope they’ll come home as I have during this break and visit rural hospitals and hear first-hand from administrators and the people who work there what cutbacks in the Medicaid program mean for their communities,” Durbin said.

Democrats fear Republicans will lean on cuts to social safety net programs such as Medicaid to pass a budget plan that would extend more than $4 billion worth of tax cuts and help pay for Trump initiatives such as mass deportations.

Illinois covers about half of Medicaid costs for about 3.4 million people, or 1 in 4 residents, under the traditional program. Medicaid eligibility was expanded in 2010 by the Affordable Care Act to include more adults at higher income levels. Approximately 770,000 people in Illinois are covered under the expansion and the federal government pays 90% of the cost for that group.

Read more: State lawmakers brace for possible federal cuts to Medicaid

If Congress severely reduced that program, the state wouldn’t be able to make up the billions of dollars the federal government sends Illinois each year to cover the program, Gov. JB Pritzker said at a news conference Friday in Peoria.

“I believe that blood will be on their hands,” Pritzker said of Trump and Republicans. “People will lose their lives as a result of what they’re trying to do right now.”


JB Pritzker Gov. JB Pritzker, a vocal critic of Donald Trump, speaks at a Rockford stop on his “Standing Up for Illinois” tour on March 21. Pritzker set up the multi-day tour to voice opposition to President Donald Trump and other federal Republicans. (Capitol News Illinois photo by Andrew Adams)


Pritzker said the size of the tax cuts Republicans are seeking is so large they will be forced to dip into Medicaid, Medicare and Social Security to cover the cost. For Illinois, that could mean $8 billion worth of health insurance coverage could be at risk, the governor said.

“Donald Trump and Elon Musk and congressional Republicans, in their crusade to give an enormous, massive tax cut to the wealthiest people in the country, have put working Illinoisans and health care on the chopping block,” Pritzker said.

Durbin said the cuts could upend the Illinois health care industry as well.

“If we do substantial cuts on Medicaid, it could have an impact on individuals first and foremost, but certainly on the survival of clinics and hospitals around the nation, and in particular, in downstate Illinois,” Durbin said.

Cuts could limit services at health care facilities and could force some hospitals or medical centers to close as they lose Medicaid funding.

“The point is this: When you decide priorities for your future, and we’re making those decisions every single day in Washington, I think health care should be the highest priority,” Durbin said.

Democrats on tour

Both Pritzker and Durbin, the state’s top elected Democrats, spent the week touring Illinois, highlighting impacts the state could feel from action at the federal level alongside other Democratic members of Congress from Illinois. Durbin focused on Medicaid on stops at hospitals in Chicago and Taylorville while Pritzker discussed agriculture, Social Security, infrastructure and Medicaid at events in Urbana, Romeoville, Rockford and Peoria.

“If people stay home and don’t speak up about this, we will see people die as a result of the devastation that this will cause,” Pritzker said Thursday in Romeoville.

Both Democrats’ hopscotching around Illinois came days after Pritzker and Durbin found themselves on opposite sides of a spending bill in Congress.

Last week, Durbin voted for a spending plan to keep the government open through September, which angered many Democrats including Pritzker, who thought Senate Democrats should force a government shutdown as a roadblock to Trump’s agenda.

“It was a huge mistake,” Pritzker said Wednesday in Urbana. “I’ve made it very clear, lots of people made it very clear, that the people who voted for the (continuing resolution) in the Senate were wrong. Dead wrong.”


Dick Durbin Sen. Dick Durbin, D-Ill., speaks to Chicago residents at Roseland Community Hospital on March 18. (Capitol News Illinois photo by Andrew Adams)


But shutting down the government would have been worse and enabled Trump and Elon Musk’s so-called Department of Government Efficiency to continue dismantling parts of the federal government, Durbin said.

“I have never voted for a shut down and I didn’t last week,” Durbin said. “Do I think it’s right that we have an appropriations process that is not bipartisan? No, I don’t. And now we’re going into another one and I’ll just tell you this: I want to hold both Democrats and Republicans responsible to come up with a bipartisan approach to spending that makes sense.”

The public disagreement between the two Democrats comes as Durbin contemplates running for reelection in 2026. A litany of Illinois Democrats is rumored to be waiting in the wings, including Pritzker’s running mate, Lt. Gov. Juliana Stratton.

Durbin would only say that he will decide “soon.” The 80-year-old senator, who resides in Springfield, said “whether I’m still physically able, mentally able to deal with the issues,” are the top factors guiding his decision.

 

Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation. 

This article first appeared on Capitol News Illinois and is republished here under a Creative Commons license.

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Federal Court Issues Temporary Restraining Order Against Social Security Administration and Department of Government Efficiency https://sjodaily.com/2025/03/22/federal-court-issues-temporary-restraining-order-against-social-security-administration-and-department-of-government-efficiency/ https://sjodaily.com/2025/03/22/federal-court-issues-temporary-restraining-order-against-social-security-administration-and-department-of-government-efficiency/#comments Sat, 22 Mar 2025 05:51:00 +0000 https://sjodaily.com/?p=24872 The United States District Court for the District of Maryland has granted a temporary restraining order (TRO) in a case involving the American Federation of State, County and Municipal Employees, AFL-CIO, and others against the Social Security Administration (SSA) and the Department of Government Efficiency (DOGE). The order, issued on […]

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The United States District Court for the District of Maryland has granted a temporary restraining order (TRO) in a case involving the American Federation of State, County and Municipal Employees, AFL-CIO, and others against the Social Security Administration (SSA) and the Department of Government Efficiency (DOGE). The order, issued on March 20, 2025, restricts access to sensitive personally identifiable information (PII) held by the SSA.

Key Provisions of the Order

  1. Restriction on Access to PII: The SSA is prohibited from granting access to any of its systems containing PII to the DOGE, its affiliates, or individuals associated with Elon Musk and Amy Gleason. This includes records from the Enterprise Data Warehouse, Numident, Master Beneficiary Record, and Supplemental Security Record.
  2. Data Disposal and Software Removal: The DOGE defendants and their affiliates must delete all non-anonymized PII data obtained from SSA systems since January 20, 2025. They are also required to remove any software installed on SSA devices or systems since that date.
  3. Conditions for Access: While the SSA can provide redacted or anonymized data to DOGE team members, this is contingent upon those individuals completing required training and background checks. Access to non-anonymized data requires a detailed justification and court review.
  4. Compliance Reporting: The SSA must submit a status report by March 24, 2025, detailing actions taken to comply with the order, including ensuring that all necessary training and background checks are completed for individuals seeking access to SSA systems.

The order is set to expire in fourteen days unless extended by the court. The parties involved are expected to confer on a schedule for limited discovery and a briefing schedule for a potential preliminary injunction motion, with a joint status report due by March 27, 2025.

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Trump’s Executive Order to Dismantle Department of Education: Impacts and Implications https://sjodaily.com/2025/03/22/trumps-executive-order-to-dismantle-department-of-education-impacts-and-implications/ https://sjodaily.com/2025/03/22/trumps-executive-order-to-dismantle-department-of-education-impacts-and-implications/#respond Sat, 22 Mar 2025 01:05:11 +0000 https://sjodaily.com/?p=24885 President Donald Trump signed a sweeping executive order aimed at dismantling the Department of Education, fulfilling a campaign promise to return educational authority to state and local governments. While the order has generated significant attention, its immediate effects remain uncertain as only Congress has the authority to fully abolish a […]

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President Donald Trump signed a sweeping executive order aimed at dismantling the Department of Education, fulfilling a campaign promise to return educational authority to state and local governments. While the order has generated significant attention, its immediate effects remain uncertain as only Congress has the authority to fully abolish a federal agency. 

The Department of Education plays a critical role in supporting nearly 18,200 school districts and over 50 million K-12 students across the U.S. Its higher education programs serve more than 12 million students annually. 

President Trump’s directive instructs Education Secretary Linda McMahon to “take all necessary steps to facilitate the closure of the Department of Education and return education authority to the States, while continuing to ensure the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely.

“The Order also directs that programs or activities receiving any remaining Department of Education funds will not advance DEI or gender ideology.”

Redistribution of Programs

Trump has indicated that several key programs will be preserved and transferred to other federal agencies:

  1. The Small Business Administration will take charge of the federal student loan portfolio.
  2. The Health and Human Services Department will oversee programs related to special needs and nutrition.
  3. Other essential programs like Pell Grants and Title I funding will be “fully preserved and transferred” to unspecified departments.

“My administration will take all lawful steps to shut down the department. We’re going to shut it down and shut it down as quickly as possible. It’s doing us no good,” Trump said.

However, the executive order cannot immediately eliminate the department, as that would require congressional approval. White House Press Secretary Karoline Leavitt acknowledged that the Department would not be completely abolished but would become “much smaller than its current size”.

The executive order follows significant staffing reductions at the Department. Earlier in March 2025, the Department of Education reduce its staff to 2,183 employees—nearly half of its January workforce of more than 4,100—under the direction of Elon Musk’s Department of Government Efficiency. 

Trump’s reasoning behind eliminating the Department of Education is tied to a lie that the United States ranks last in educational outcomes. 

While his remarks have been repeated in various contexts, they lack a clear basis in internationally recognized assessments.

  1. Global Rankings: According to the most recent Program for International Student Assessment (PISA) results from 2022, U.S. students ranked 21st in math, 5th in reading, and tied for 10th in science among OECD countries. These rankings place the U.S. far from the bottom in educational outcomes.
  2. Educational Attainment: The U.S. ranks 8th out of 41 countries in educational attainment, with 92% of adults aged 25 to 64 holding at least a high school diploma, significantly above the OECD average of 79%.
  3. Spending Per Pupil: While the U.S. spends more per pupil on education than most countries—ranking third globally—it does not achieve commensurate outcomes in some areas, particularly in math performance. However, this does not equate to being “last” or ranked 40th overall.

The Department of Education: Roles and Responsibilities

To understand the potential impact of this executive order, it’s crucial to recognize what the Department of Education actually does—and doesn’t do.

What the Department Does

Established in 1980 under President Jimmy Carter, the Department of Education currently operates with approximately 4,400 employees and a $68 billion budget. Despite having the smallest staff among Cabinet agencies, it manages the third-largest discretionary budget in the federal government.

The Department’s primary responsibilities include:

  1. Administering and overseeing federal student loan programs, managing a $1.6 trillion student loan portfolio for more than 40 million Americans.
  2. Distributing approximately $18 billion in Title I funding to schools in economically disadvantaged areas.
  3. Issuing Pell Grants to help low- and middle-income students pay for college.
  4. Administering the Free Application for Federal Student Aid (FAFSA), which enables students to apply for loans, grants, and other college aid.
  5. Enforcing civil rights laws in educational settings, including Title VI of the Civil Rights Act, Title IX of the Education Amendments, and Section 504 of the Rehabilitation Act, which prohibit discrimination based on race, sex, and disability respectively.
  6. Collecting and disseminating data and research on America’s schools.
  7. Supporting equal access initiatives to help disadvantaged students.

What the Department Doesn’t Do

Contrary to some perceptions, the Department of Education does not dictate school curriculums, which have traditionally been managed by state and local educational districts. Education policy in the United States operates under a principle of federalism, with primary authority resting with states and local communities. The federal government’s role has historically focused on providing funding, ensuring equal access, and protecting civil rights rather than controlling curriculum content.

Impacts on States and School Districts

The executive order’s emphasis on transferring “educational authority back to state and local governments” raises significant questions about the future of federal education funding.

According to Gov. JB Pritzker’s office, dismantling the Department of Education would set back schools and students in Illinois by creating uncertainty about the federal administration due to potential cuts to:

  • Federal Education Funding: Public schools in Illinois are expecting $3.56 billion in federal funds in Fiscal Year 2025 serving 1.8 million students, accounting for $1,923 per student. ​
  • Special Education Funding: Illinois is expecting to use $1.33 billion in federal funding in Fiscal Year 2025 to support more than 295,000 children receiving special education services.
  • Pell Grants: In the 2023-2024 academic year, more than 225,000 students in Illinois received over $1 billion in Pell Grants to assist with educational expenses. Pell Grants help make college more affordable and accessible for students from low-income households, contributing to the economic mobility of students and families across our state.
  • Student Loan Programs: Illinois has 1.6 million student loan borrowers who rely on the federal government to ensure affordable monthly payments and timely processing of applicable loan forgiveness programs. Dismantling the Department of Education threatens to send Illinois’ most vulnerable borrowers into default.

Impacts on Children and Students

The potential dissolution of the Department of Education could significantly affect K-12 students, particularly those who rely on specialized federal programs.

Special Education and Disadvantaged Students

Federal funding plays a crucial role in supporting special education services and programs for disadvantaged students. National Education Association President Becky Pringle claimed that cuts to the Department would increase class sizes, cut job training programs, eliminate special education for those with disabilities, axe civil rights protections and increase college tuition prices, putting it out of reach for middle class families.

Civil rights advocates are particularly concerned about the enforcement of anti-discrimination laws in educational settings. The Department’s Office for Civil Rights currently investigates complaints and ensures compliance with federal civil rights laws. Without this oversight, some fear that protections for vulnerable student populations could be weakened.

Impacts on College Students and Student Loans

Perhaps the most immediate concern for millions of Americans relates to the management of federal student loans and financial aid programs.

Student Loan Administration

On March 21, 2025, the day after signing the executive order, President Trump announced that the Small Business Administration (SBA) would take over management of the federal student loan portfolio. 

“We have a portfolio that is very large, lots of loans, tens of thousands of loans, pretty complicated deal,” Trump said, speaking to reporters in the Oval Office. “That’s coming out of the Department of Education immediately.”

“They’re all set for it,” the president said of the SBA. “They’re waiting for it.”

Outstanding federal education debt has surpassed $1.6 trillion, with over 40 million Americans holding student loans. This shift in responsibility to the Small Business Administration (SBA) has raised significant concerns regarding its ability to manage such a large and intricate portfolio. 

Potential Disruptions for Borrowers

Experts warn that transferring the student loan system could disrupt loan forgiveness and repayment programs. Additionally, the FAFSA application process, which millions of students rely on annually, could face disruptions during any transition period.

Beth Maglione, NASFAA’s Interim President and CEO, said, “Dissolving the Department of Education — or starving it of resources — won’t eliminate the need to administer its programs. Federal student aid programs enshrined in law — including Pell Grants and campus-based aid like Federal Work-Study — must still be managed, loans must be serviced, and the FAFSA must be updated and maintained each year.

Given what we know about large-scale federal changes that involve complex systems and technology, it seems highly unlikely that untangling and redistributing the work of an entire agency would proceed without disruption for our nation’s students and colleges, particularly when the federal workforce tasked with carrying this out has just been decimated.

Dismantling the Department in haste could cripple the government’s ability to accurately distribute billions in federal student aid, putting millions of students at risk — especially low-income students who lack a financial safety net.

American families and college students need financial aid that is accessible, predictable, and reliable. Creating chaos and uncertainty in the agency that oversees the administration of those funds is not the way to achieve that.

If there is a plan to reassign or redistribute this critical work performed by the Department and prevent disruptions for students, families, and the nation’s institutions of higher education, we ask the administration to share it immediately.”

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Pritzker’s community college initiative stalls in House committee https://sjodaily.com/2025/03/22/pritzkers-community-college-initiative-stalls-in-house-committee/ https://sjodaily.com/2025/03/22/pritzkers-community-college-initiative-stalls-in-house-committee/#respond Sat, 22 Mar 2025 00:47:00 +0000 https://sjodaily.com/?p=24867 by Peter Hancock, Capitol News Illinois March 20, 2025 SPRINGFIELD — One of Gov. JB Pritzker’s top legislative initiatives stalled in the General Assembly this week when the chair of the House Higher Education Committee refused to call a vote on a bill that would authorize community colleges to offer […]

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by Peter Hancock, Capitol News Illinois
March 20, 2025

SPRINGFIELD — One of Gov. JB Pritzker’s top legislative initiatives stalled in the General Assembly this week when the chair of the House Higher Education Committee refused to call a vote on a bill that would authorize community colleges to offer four-year bachelor’s degree programs in select, high-demand career fields.

The decision not to call the bill for a vote came as lawmakers face a Friday deadline for most bills other than spending bills to pass out of committee and be sent to the floor of their respective chamber.

But legislative deadlines are not always strictly observed in Springfield, and Rep. Katie Stuart, D-Edwardsville, who chairs the committee, said the decision not to act on the bill does not necessarily mean it is dead for the session.

“I don’t think around here anything’s really ever dead, and I think there’s a path forward,” she told reporters after Wednesday’s committee hearing.

Read more: Pritzker to call for expansion of 4-year degree offerings at some community colleges

Pritzker called for expanding the role of community colleges by allowing them to offer four-year degree programs in his State of the State address in February. The idea was to make those programs more affordable and accessible to Illinoisans, especially those who don’t live near a four-year university.

“With lower tuition rates and a greater presence across the state — especially in rural areas — community colleges provide the flexibility and affordability students need,” he said. This is a consumer-driven, student-centered proposal that will help fill the needs of regional employers in high-need sectors and create a pathway to stable, quality jobs for more Illinoisans.”

House Bill 3717, sponsored by Rep. Tracy Katz Muhl, D-Northbrook, would implement Pritzker’s plan. It would allow community colleges to offer bachelor’s degree programs in select areas, provided the school’s board of trustees can demonstrate the program would help fill an “unmet workforce need” in the area the school serves, and that the school has sufficient resources, expertise and student interest to sustain the program.

But Stuart, whose district includes the campus of Southern Illinois University Edwardsville, said concerns have been raised that allowing community colleges to offer bachelor’s programs could undercut similar programs already being offered by four-year universities.

Stuart said her concerns were not necessarily about the impact the change would have on SIUE, but rather schools such as Northeastern Illinois University and Chicago State University that serve largely minority student populations.

“If we’re not careful about what programs are allowed, that it could collapse the existing programs in those institutions, collapse their student base, and just make them not able to be operational,” she said. “And then we wouldn’t have a four-year institution serving those communities.”

After Wednesday’s hearing, a coalition of presidents from several public and private universities, including Chicago State and NEIU, issued a statement saying they were concerned the legislation could lead to “duplicating efforts and increasing costs at a time of limited resources,” but they suggested there was still room for a compromise.

“We are encouraged by negotiations and remain committed to working collaboratively to build a higher education ecosystem that serves all of our students and employers,” the statement read.

A spokesman for Pritzker also said there was still time to negotiate a bill that would satisfy the concerns of lawmakers and universities.

“It’s March, and plenty of time remains in session to achieve that goal,” press secretary Alex Gough said in an email. “He (Pritzker) looks forward to continuing discussions with lawmakers in both chambers and other stakeholders throughout the rest of the legislative session.”

 

Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation. 

This article first appeared on Capitol News Illinois and is republished here under a Creative Commons license.

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Federal Reserve Maintains Interest Rates Amid Economic Uncertainty https://sjodaily.com/2025/03/21/federal-reserve-maintains-interest-rates-amid-economic-uncertainty/ https://sjodaily.com/2025/03/21/federal-reserve-maintains-interest-rates-amid-economic-uncertainty/#respond Fri, 21 Mar 2025 18:52:01 +0000 https://sjodaily.com/?p=24882 The Federal Reserve announced its latest monetary policy decision, opting to maintain the federal funds rate target range at 4.25% to 4.50%. This decision reflects the Federal Open Market Committee’s (FOMC) ongoing efforts to balance its dual mandate of maximum employment and stable inflation, which remains elevated above the long-term […]

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The Federal Reserve announced its latest monetary policy decision, opting to maintain the federal funds rate target range at 4.25% to 4.50%. This decision reflects the Federal Open Market Committee’s (FOMC) ongoing efforts to balance its dual mandate of maximum employment and stable inflation, which remains elevated above the long-term target of 2%.

Recent economic indicators suggest continued solid growth in economic activity, with the unemployment rate stabilizing at historically low levels. Labor market conditions remain robust, but inflation persists at a somewhat elevated level. The FOMC acknowledged increased uncertainty surrounding the economic outlook and emphasized its attentiveness to risks that could impact employment or inflation goals.

In addition to holding interest rates steady, the FOMC announced changes to its balance sheet reduction strategy. Beginning in April, the monthly redemption cap for Treasury securities will be reduced from $25 billion to $5 billion, while the cap for agency debt and agency mortgage-backed securities will remain unchanged at $35 billion. This adjustment signals a slower pace of quantitative tightening as the Committee reassesses economic risks.

The Fed reiterated its commitment to achieving maximum employment and returning inflation to its 2% target over the longer term. It will continue monitoring incoming data and evolving economic conditions to determine future policy adjustments.

The decision was not unanimous among FOMC members. Christopher J. Waller voted against the action, expressing support for maintaining the current federal funds rate but opposing the slower pace of securities holdings reduction. The majority of members, Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Adriana D. Kugler; Alberto G. Musalem; and Jeffrey R. Schmid, supported the policy measures.

The Committee emphasized its readiness to adjust monetary policy if risks emerge that threaten its goals. It will incorporate labor market data, inflation pressures and expectations, financial developments, and international factors into its assessments.

This decision comes as policymakers navigate a complex economic environment marked by solid growth but persistent inflationary pressures. The Fed’s cautious approach reflects its focus on balancing risks while supporting sustainable economic expansion.

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